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Respondent then called the examining agent as a witness to
introduce basic documents in the case, including a delinquent
1993 return, transcripts and computer records of petitioner's
1993 and 1994 tax years, and a copy of the deficiency notice.
The agent also explained the reconstruction of petitioner's
income by means of BLS averages. Petitioner, on cross-
examination, only asked respondent's agent why he used BLS
averages even though petitioner was drawing unemployment
compensation and had a standard of living far below the average
depicted by the statistics. The agent responded that
petitioner's refusal to come forward with any information at the
time of the examination was the reason that any differences in
petitioner's cost of living and income from the statistical
averages were not taken into account in determining petitioner's
income for 1993 and 1994.
Petitioner admittedly and purposely failed to file returns
for the taxable years 1993 and 1994. Petitioner asserted the
Fifth Amendment with respect to submitting documents or
information to respondent or the Court. The filing of income tax
returns in accordance with statutory and regulatory provisions
does not, per se, violate a taxpayer's privilege against self-
incrimination under the Fifth Amendment. White v. Commissioner,
72 T.C. 1126, 1130 (1979). Petitioner in this case did not claim
to be under criminal investigation for the taxable years in
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